Activia Properties : Notice Concerning Conclusion of Lease Agreement on Owned Property (Kobe Kyu Kyoryuchi 25Bankan)

December 10, 2021

FOR IMMEDIATE RELEASE

Activia Properties Inc.

21-1 Dogenzaka 1-chome,Shibuya-ku, Tokyo

Nobuhide Kashiwagi

Executive Director

(Code: 3279)

Asset Management Company

TLC REIT Management Inc.

Masaoki Kanematsu

President & CEO

Inquiries

Kazuyuki Murayama

General Manager of Strategy Department

Activia Management Division

(Tel: [phone])

Notice Concerning Conclusion of Lease Agreement on Owned Property

(Kobe Kyu Kyoryuchi 25Bankan)

In relation to Kobe Kyu Kyoryuchi 25Bankan (the "Property"), Activia Properties Inc. ("API") announces that today, it concluded a lease agreement (the "Agreement") below.

Details are as follows:

1. Overview of the Agreement

(1) Name of the tenant	Plan Do See Inc.
(2)	Type of the agreement	Fixed-term building lease contract
(3)	Date of conclusion	December 10, 2021
(4)	Term of the lease	March 1, 2022 to February 28, 2051
(5)	Leased area	13,702.41 m2
(6)	Ratio of leased area to total leasable area of the Property	69.7%（Note 1）
(7)	Ratio of leased area to total leasable area of API's portfolio	3.2%（Note 2）
(8)	Monthly rent	-（Note 3）
(9) Tenant leasehold and security deposits	-（Note 3）

(Note 1) Calculated based on the total leasable area of the Property at the end of October 2021 (19,653.90 m2).

(Note 2) Calculated based on the total leasable area of the API's portfolio at the end of October 2021 (429,067.46m2).

(Note 3) Not disclosed because the tenant approval is not obtained.

2. Background of the conclusion of the Agreement

With a little less than 10 years left before expiration of the current fixed-term building lease with Plan Do See, Inc., the tenant (the "Tenant"), we received from the Tenant a notice of intention to renew the lease agreement for a long term against a backdrop of its investment plan. API has studied the risk of cancellation for the remaining period of the current lease and the terms and conditions, etc. of the new agreement, and decided to conclude the Agreement in view of expectation of future stability and growth post Covid-19 in our management performance.

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3. Outlook

Due to the conclusion of the Agreement, the impact on the API's management performance for the fiscal period ending May 31, 2022 (the 21st fiscal period, from December 1, 2021 to May 31, 2022) will be minimal.

*Website of API: https://www.activia-reit.co.jp/en/

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